Tourism

Tourism had been an important sector of Singapore's economy for more
than a decade, averaging 16 percent of total foreign exchange earnings
and 6 percent of GDP between 1980 and 1985. Tourist arrivals had dropped
sharply in 1983, however, the first decline in over twenty years. The
decrease resulted both from the regional and world economic downturn at
that time and from travel restrictions instituted by neighboring
countries to preserve their own foreign exchange. Observers noted also
that Singapore was losing its "oriental mystique and charm."
In its effort to build a modern city, it had torn down old buildings and
curtailed traditional street activities, aspects considered by tourists
to be part of Singapore's attraction. In 1984 the government established
a Tourism Task Force to recommend ways to attract more visitors, and the
following year the budget of the Singapore Tourist Promotion Board was
increased by 60 percent. Steps were taken to preserve areas of special
architectural, historical, or cultural interest. Sentosa Island, off the
southern coast, was developed as a resort and recreation center,
complete with museums, parks, golf courses, lagoons, beaches, trails,
and gardens, all connected by monorail. Singapore also began billing
itself as the "hub of Southeast Asia" and marketing sidetrips
to destinations in neighboring countries. As with other economic
activities, tourism was viewed as a high value-added industry. Although
increasing the absolute number of visitor arrivals was the main target,
a further aim was to attract the high-spending, business visitors
attending conventions and trade exhibitions, which Singapore hosted in
large numbers.

Tourist arrivals recovered quickly from the 1983 downturn, reaching 3
million in 1985. In 1987 tourist arrivals reached 3.7 million, a 15
percent increase over the previous year. In 1988 arrivals rose another
14 percent to nearly 4.2 million. Singapore's top tourist-generating
markets in 1987 were ASEAN (29 percent), Japan (15 percent), Australia
(9 percent), India (7 percent), the United States (6 percent), and
Britain (5 percent). Although a building boom had caused a glut of hotel
rooms in the mid-1980s, by early 1989 occupancy was running at about 80
percent.